Agreed vs Market Value Car Insurance Calculator NZ

This calculator compares agreed value and market value car insurance in New Zealand, showing the difference in what you would be paid if your car were written off, so you can choose the cover that suits you. The two are fundamentally different promises. Agreed value fixes a payout figure when you take out the policy, and that is what you receive on a total loss no matter how much the car has depreciated since, giving certainty and usually a higher cheque. Market value pays whatever the insurer assesses the car to be worth at the moment of the claim, which is lower and keeps falling as the car ages, but the premium is often cheaper. You enter the agreed value offered and your estimate of the car's market value at the time of a claim, and the calculator shows the payout under each basis and the difference between them. For newer cars, or where you owe money on the vehicle, the certainty of agreed value can be worth the small extra premium, while for older cars the two figures are often close enough that market value is fine. Remember a market value payout late in the policy year reflects a year's extra depreciation, so the gap can be wider than it first appears.

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$
$
$4,000 more with agreed value
difference in a total-loss payout
Agreed value pays$28,000
Market value pays$24,000

Agreed value pays the set figure; market value pays the assessed current value, which falls as the car ages. Premiums differ. Estimate only.

How it works

The calculator simply shows the two payout bases side by side: the agreed value figure you fixed with the insurer, and your estimate of the market value at the time of a claim. The difference is what agreed value protects you from, the depreciation gap, weighed against any extra premium it costs.

Worked example

If your agreed value is 28,000 dollars but the car would be assessed at 24,000 dollars market value when written off, agreed value pays 4,000 dollars more. Whether that is worth a higher premium depends on how much extra agreed value costs each year.

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Frequently asked questions

What is the difference between agreed and market value?

Agreed value pays a set amount you and the insurer fix when the policy starts, regardless of later depreciation. Market value pays what the car is worth at the time of the claim, which the insurer determines and which falls as the car ages.

Which is better?

Agreed value gives certainty and usually a higher payout on a write-off, but the premium is often a little higher. Market value can be cheaper and is common for older cars where the values are close.

Does market value drop over the year?

Yes. A car insured for market value is worth less at the end of the policy year than the start, so a claim late in the year may pay noticeably less than you expect.